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Stocks Under $10 with 50-100% upside potential - 14 days FREE!
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4 Sell-Rated Dividend Stocks

Student Transportation

Dividend Yield: 8.50%

Student Transportation (NASDAQ: STB) shares currently have a dividend yield of 8.50%.

Student Transportation Inc. provides school bus transportation and management services to public and private schools in North America. The company has a P/E ratio of 49.23. Currently there are 2 analysts that rate Student Transportation a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Student Transportation has been 90,100 shares per day over the past 30 days. Student Transportation has a market cap of $516.3 million and is part of the diversified services industry. Shares are up 4.2% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Student Transportation as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, poor profit margins and generally high debt management risk.

Highlights from the ratings report include:

  • STB has underperformed the S&P 500 Index, declining 6.12% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • The gross profit margin for STUDENT TRANSPORTATION INC is currently lower than what is desirable, coming in at 27.10%. Regardless of STB's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, STB's net profit margin of 2.49% is significantly lower than the industry average.
  • The debt-to-equity ratio of 1.13 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, STB's quick ratio is somewhat strong at 1.34, demonstrating the ability to handle short-term liquidity needs.
  • In comparison to the other companies in the Road & Rail industry and the overall market, STUDENT TRANSPORTATION INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has significantly increased by 85.17% to $22.19 million when compared to the same quarter last year. In addition, STUDENT TRANSPORTATION INC has also vastly surpassed the industry average cash flow growth rate of 22.68%.

New From TheStreet: Jim Cramer's Protégé, Dave Peltier, only buys dividend stocks that have the potential for a 3% to 4% yield and 10% growth. Get his best picks for less than $50/year.

Other helpful dividend tools from TheStreet:

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

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